International shipping and logistics market update - Week 6/2025

Update on international shipping and logistics markets for Asia, Europe and North America in Week 6/2025.

International shipping and logistics market update - Week 6/2025

Drewry's composite global container freight rate index in Week 6/2025 continued to decrease by 3% compared to the previous week, down to USD 3,273/FEU. This freight rate index is 130% higher than the average of 2019 before the pandemic (USD 1,420).

Drewry’s World Container Index Week 6/2025 (Photo: Phaata | Source: Drewry)

1. Asia - Northern America route

Ocean freight rates from Asia to the West Coast of North America continued to decrease by 1.94% week-on-week in week 6/2025, to USD 4,958/FEU. This is down 13.46% month-on-month, according to Xeneta data.

Still weak demand after the Lunar New Year has put downward pressure on freight rates. Shipping lines have reduced spot rates for both the West Coast and East Coast to stimulate demand. Phaata forecasts that freight rates will continue to decrease until Week 8. In Week 9 and Week 10, freight rates may increase. Carriers are expected to adjust PSS in mid-February.

Blank sailings announced before the Lunar New Year are now impacting market capacity. Despite the slowdown in demand, most carriers reported high vessel utilization in February due to reduced capacity adjustments. Carriers are expected to accept overbookings in preparation for March.

There are currently no significant shortages of container equipment at Asian origin ports.

Tariff Update & De Minimis Exemptions:

Starting Tuesday, February 4, the US will impose an additional 10% tariff on goods originating from China and Hong Kong under President Trump’s executive order. At the same time, the de minimis provision for Chinese goods will be eliminated.

In addition, the order suspends the “duty drawback” policy for additional tariffs on Chinese goods (Mexico and Canada are temporarily suspended). However, businesses can still apply for refunds on standard tariffs, including Section 201 and Section 301 duties.

China quickly retaliated after the US issued the order.

Meanwhile, tariffs on Canada and Mexico were suspended for 30 days after President Trump reached a last-minute agreement with Mexican President Claudia Sheinbaum and Canadian Prime Minister Justin Trudeau.

Asia-US West Coast Freight rate | Week 6/2025 (Image: Phaata.com)

2. Asia - Northern Europe route:

Freight rates from Asia to North Europe continued to fall sharply by 9.80% compared to the previous week, down to USD 3,349/FEU. This price decreased by 32.15% compared to the previous month, according to Xeneta data.

Demand remains weak after the Lunar New Year, and competition for market share among shipping lines is expected to intensify after the Lunar New Year. Phaata forecasts that Asia-Europe shipping rates will continue to decline.

The blank sailings that were scheduled before the Lunar New Year are currently affecting the transportation capacity in the market. Most shipping lines still recorded good vessel occupancy rates in February despite the drop in demand. Shipping lines are likely to accept "over-booking" to prepare for March.

There may be some shortages of equipment at ports of departure due to cancellations and delays of vessels. Shippers who pick up their containers early may also reduce the risk of missing their loading schedules.

The situation in the Suez Canal is gradually stabilizing after previous disruptions due to attacks in the Red Sea. The Houthis have declared compliance with the ceasefire in Gaza signed last month and announced a halt to attacks on commercial vessels in the area. However, major shipping lines remain cautious, prioritizing security measures before resuming normal operations. The Suez Canal Authority (SCA) is actively implementing measures to restore traffic through the canal, amid improved security. On Monday, the SCA released new navigation maps for a planned 10-kilometer widening of the canal, which will increase capacity and allow for an additional 6-8 ships to pass through each day.

Asia-Northern Europe Freight rate | Week 6/2025 (Image: Phaata.com)

3. Northern America - Asia route:

Freight rates from North America (West Coast) to Asia in week 6/2025 decreased by 2.53% compared to the previous week, to USD 656/FEU. This price decreased by 5.88% compared to the previous month, according to Xeneta data.

US West Coast - Asia Freight rate | Week 6/2025 (Image: Phaata.com)

4. Northern Europe-Asia route:

Freight rates from North Europe to Asia in week week 6/2025 fell sharply by 18.83% compared to the previous week, to USD 250/FEU; this price is down 20.13% compared to the previous month, according to Xeneta data.

Northern Europe - Asia Freight rate | Week 6/2025 (Image: Phaata.com)